Facilitating the Adoption of Regulatory Impact
Assessment (RIA) Framework in India
August 21st, 2014
Deboshree Banerji, CUTS International
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Outline
CUTS Project on RIA
Need for the project
Need to Assess Impact of Legislations
Why financial sector?
Key Activities
Expected Outputs
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Expected Outcomes
About the Project
 Genesis of CUTS work on regulatory reform:
 India Competition and Regulation Report (2007 – 2013)
 Working group on Business Regulatory Framework: Knowledge Partner
 Draft Regulatory Reform Bill
 Objective: Enable the central government and certain regulatory
authorities to be in a position to adopt RIA framework for
improving economic governance in India
 Activity: Undertaking RIA in Insurance and Banking sectors
(Primary Laws)
 Time Frame: July 2014 – March 2016
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About the Project (Contd…)
 Create evidence: Design and implement RIA tool
 Generate
demand: Highlight benefits, awareness and
advocacy programs
 Ensure supply: Focused training and capacity building
 Sectors: Banking and Insurance related primary laws
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Need for the project
 Indian regulatory governance processes have become
outdated
 Stakeholders are not regularly consulted while policy
making, and there is no formal policy review mechanism.
 Resulted in a loss of investor confidence and barriers to
economic growth.
 RIA is an appropriate remedy for this situation
 participatory approach to assess impact of regulations
 determine costs and benefits
 select the most appropriate policy alternative
 Ensures greater clarity and predictability in regulatory process
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Need to Assess Impact of Legislations
Key for Efficient Regulation – Striking the Right Balance
1. Independence
2.Transparency
3. Predictability & Stability
4. Cost-effectiveness
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1. Accountability
2. Commercial sensitivity
3. Adaptability
4. Detail - Oriented
Why Financial Sector?
 Inadequate access to financial services
 Lack of competitive neutrality
 Lack of objective clarity
 Accountability issues
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Key Activities
 Constitution of National Reference Group
 Literature review and desk research
 Preliminary stakeholder surveys
 Two Focused group discussions for government/regulators
and industry
 Combined stakeholder forum
 Two national level advocacy seminars
 Four training/capacity building sessions
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Expected Outputs
 Two Research Reports
 Customised RIA Toolkit
 Two policy briefs on sector specific recommendations
 Briefing paper on process and benefits of RIA
 Consolidated project report
 Newspaper Articles
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Expected Outcomes
Advocate adoption of RIA framework by
 Central government
 Regulatory authorities
Cadre of individuals equipped to undertake
RIA
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Thank You
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